Wednesday, 1 October 2014
Last updated 14 hours ago
Jun 23 2010 | 1:41pm ET
The Volcker rule appears likely to lose two of its three main provisions as regards hedge funds and private equity funds.
Senate negotiators, who are working with their House of Representatives counterparts to hammer out differences in their versions of the financial regulation reform bill, are set to suggest allowing banks to sponsor alternative investment funds. The bar on investing in hedge and private equity funds may also be subject to a de minimis exception, leaving the Volcker rule to bar only bank holding companies from owning such funds and from proprietary trading.
The proposed changes are designed to win the support of at least three Republican senators. One of the Republicans who voted for the original bill in the Senate, Sen. Scott Brown of Massachusetts, has been pushing for an exemption to the investing restriction, which could hit custody banks like Boston’s State Street Corp. hard.
Another custody giant, Bank of New York Mellon, said that the rule as written “casts an unnecessarily wide net” and “would prohibit traditional activities that our clients expect from us.”
But allowing even a de minimis exception—allowing banks to invest between 2% and 5% of their capital in alternative investment funds, as industry lobbyists are pushing—might imperil some Democratic support for the bill, with Sen. Russ Feingold (D-Wisc.) warning he will oppose any Wall Street reform bill that isn’t tough enough.
In an effort to add some toughness to a weakened Volcker rule, Senate negotiators may also propose eliminating some of the latitude the original rule granted to regulators.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...